- Pair post second weekly slide in-a-row on the back of a weaker US Dollar and higher crude oil prices.
- Mexican peso among top performers.
- The USD/MXN pair resumed the decline on Friday and dropped to test March lows below 18.75. The improvement in risk sentiment favored the rally in Emerging market currencies that extended weekly gains.
MXN, the best among the most traded
Near the end of the week, USD/MXN is hovering around 18.75, on its way to the lowest weekly close since September of last year. Since the beginning of the month, the pair dropped more than 3%.
Today it bottomed at 18.74, matching the 2019 low. The move lower took place amid a rally in equity markets, a decline of the US dollar and higher crude oil prices. Over the last five days, the Mexican peso is among the top performers across the globe.
Technical outlook
The weekly chart shows USD/MXN clearly bearish, and a breakout below the March low would point to a test of a long-term uptrend that stands around 18.60. The mentioned level should limit losses and favored a rebound. Below the next strong support is seen at 18.40.
A weekly close above 19.40 (20-week moving average) would remove the negative bias and would likely clear the way to more gains.
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